The wheels of the rumor mill are busy turning once again, with a new report saying that Snapchat is hunting around for bankers in preparation for an initial public offering.
The New York Times’ Dealbook reports that the tech darling’s parent company, the newly-named Snap Inc., has hired investment banks Morgan Stanley and Goldman Sachs, which is a signal that the company is gearing up for a potential stock sale as soon as the first quarter of next year, according to inside sources cited by the Times.
If Snapchat does go through with the IPO — which has a rumored value of $25 billion —
that kind of sale would make Snapchat the biggest company to go public since 2014, when Alibaba debuted. And because the company generates less than $1 billion in revenue right now, it could file its public offering documents confidentially with the Securities and Exchange Commission, the Times notes.
However, all this speculation could be for naught if Snapchat ends up deciding against an IPO and just goes back to figuring out new filters to entertain teens and adults trying to understand Snapchat.
Snap Is Said to Pick Bankers for an I.P.O. [Dealbook]
by Mary Beth Quirk via Consumerist